Liability of foreignness and membership in a regional economic group

Analysis of the European Union

Stewart R. Miller, Malika Richards

Research output: Contribution to journalArticle

35 Citations (Scopus)

Abstract

This study examines the performance of foreign vs. domestic firms in a regional economic group. In particular, we focus on host country and foreign-owned firms in the European Union. Results provide evidence of a liability of foreignness-foreign-owned firms underperform host country firms. However, there is also evidence that liability of foreignness can vary across countries, and that foreign firms can overcome the liability of foreignness in some host countries, even industrialized ones. The results show the moderating effects of the host country and home country environments on the relative performance of foreign firms. Lastly, the results reveal that foreign-owned banks from highly competitive home countries underperform foreign firms from less competitive home countries.

Original languageEnglish (US)
Pages (from-to)323-337
Number of pages15
JournalJournal of International Management
Volume8
Issue number3
DOIs
StatePublished - Oct 17 2002

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Host country
Liability of foreignness
European Union
Regional economics
Foreign firms
Home country
Domestic firms
Relative performance
Moderating effect

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Finance
  • Strategy and Management

Cite this

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Liability of foreignness and membership in a regional economic group : Analysis of the European Union. / Miller, Stewart R.; Richards, Malika.

In: Journal of International Management, Vol. 8, No. 3, 17.10.2002, p. 323-337.

Research output: Contribution to journalArticle

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